GM Pauses Production at Detroit's Factory Zero

General Motors (GM) has temporarily halted production at its Factory Zero plant in Detroit, Michigan, idling approximately 1,300 workers. The production pause began on March 16 and is scheduled to last until April 13.

Decline in EV Demand

The decision to idle the plant comes after a substantial decrease in demand for GM’s electric vehicles, particularly the Hummer EV. Following the elimination of the $7,500 federal EV tax credit, Hummer EV sales fell nearly 50 percent in the fourth quarter of 2025.

Hummer EV Sales Figures

  • Q4 2025: 2,555 units sold (a 49.8% decrease from 5,091 units in Q4 2024)
  • Q1 2026: 1,653 units sold (a 52.5% decrease from 3,479 units in Q1 2025)

Impact on Other Models & Workforce

Factory Zero manufactures both the Chevrolet Silverado EV and the Hummer EV. Earlier in January, GM reduced output at the plant to a single shift, resulting in 1,200 workers being placed on indefinite layoff. This latest pause adds to the challenges faced by the workforce at the facility.

Silverado EV Sales Performance

While Hummer EV sales have declined, the Chevrolet Silverado EV experienced mixed results. Q4 2025 sales were down 12.9 percent (1,896 units compared to 2,176 in 2024), but total 2025 sales reached 11,275, a 51.8 percent increase over 2024.

GM Adjusts EV Strategy

GM has announced it will take a $7.6 billion charge due to scaling back its EV spending. Despite CEO Mary Barra continuing to emphasize EVs as the company’s long-term goal, GM is also focusing on plug-in hybrid models and increasing production of traditional gasoline-powered vehicles like the Chevrolet Silverado 2500/3500 and GMC Sierra 2500/3500.

GMC Sierra EV Performance

The GMC Sierra EV showed a positive trend, with 1,288 deliveries in Q1 2026, slightly exceeding the 1,249 units delivered in the same period of 2025.